Energy, Gas, Latvia, Markets and Companies

Latvijas Gaze spokeswoman Dace Baltabola said that gas supply to the Dzintars plant might be cut because of the cosmetics company's debt accumulated since March 2015. "Current gas bills are also not being paid in full, which causes concerns that the debt might swiftly increase," Baltabola said.

She also indicated that if Dzintars fails to the gas bills by February 12, 2016, Latvijas Gaze will stop supplying gas to its plant. Gas supplies will resume when the company pays all its outstanding gas bills.

Baltabola also informed that on June 11, 2015, Latvijas Gaze sued Dzintars over its unpaid gas bills and the court ruled to seize some of Dzintars assets. Notwithstanding the court proceedings, on October 15, 2015, Latvijas Gaze and Dzintars concluded an agreement on a debt repayment schedule. Dzintars, however, has failed to stick to the schedule, which is why Latvijas Gaze has decided to cut the Dzintars plant from gas supply.

At the beginning of January 2016, Dzintars ranked among Latvia's biggest tax debtors with a tax debt of EUR 2.222 million, according to the State Revenue Service's data.

Latvijas Gaze is engaged in purchasing, transportation, storage and distribution of natural gas. The company is quoted on the Secondary List of the Nasdaq Riga stock exchange.